Traders' Corner: The Wedge Lives!
There are times as a trader when it is simply better to sit and do nothing rather than risk capital and try to impose your will on the market. Right now is one of those times. We need to be patient and let the market tell us what it wants to do. We have been in a wedge formation for a number of weeks now and whatever way the market breaks out of the wedge should create an intermediate term move that will be tradable.
The G20 meeting this weekend could provide the catalyst for the break out or break down. On a strictly Technical basis, the move should be down. However, bearish sentiment is fairly high right now and almost every guest on CNBC is bearish on the markets and economy. This makes me wonder if the market could do what it does best and fool everyone and make a break to the upside. One thing to watch for clues is the Yen. As of late, the indexes have traded inversely to the Japanese Currency. If the rally in the Yen keeps going strong then the markets wills probably drop-off. If the Yen weakens then a rally is in the cards.
Have a great week and trade safe!
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